Thursday, March 27, 2008
First Quarter Results Three Months Ended January 31, 2008
Calgary, Alberta - March 27, 2008 - Guillermo Salazar S., President and CEO of
Copper Fox Metals Inc. (TSX Venture: CUU) announces the first quarter financial results. The Company reports a loss of $598,554 for the three months ended January 31, 2008 compared to a loss of $407,802 for the three months ended January 31, 2007. The Company increased expenditures on its Schaft Creek property by $979,455 and has now spent in excess of $22,500,000 on this project. Copies of the financial statements and notes thereof and related management discussion and analysis may be obtained on SEDAR at www.sedar.com, our Company web site at www.copperfoxmetals.com or by contacting the Company directly. All amounts are in Canadian dollars unless otherwise stated.
First Quarter Overview
During the first quarter the company spent another $ 979,455 on the Schaft Creek Property and has now spent in excess of $ 22,500,000 to date on this project as the Company works toward the completion of a bankable feasibility study. The Company is still planning on completing this study within the next year.
With the accumulated data obtained through its drilling programs at the Schaft Creek site, the Company released a resource estimate, pit optimization plan, and preliminary economic assessment detailing the economic potential of this mineral deposit using conservative pricing and capital cost assumptions. The report recommends that the Company expand its plan to put a 100,000 tonne per day producing mine into operation by the end of 2011.
The Company is confident that on the release of this study it will confirm the positive economics of the Schaft Creek deposit that have already been released. The Company's management believes that they will be able to manage the construction and operation of this project and will be able to obtain the necessary financing on the strength of the bankable feasibility study.
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Liquidity
During the first quarter the Company's used $ 1,453,872 of its working capital to fund the expenditures at Schaft Creek and to support the administrative costs associated with it offices in Calgary and Vancouver. The Company had $ 2,177,542 of working capital at January 31, 2008. The Company has sufficient funds available to meet its current obligations.
The cash requirements over the next year will be significant as the Company plans to complete a bankable feasibility study. The Company believes that it will raise the necessary capital to complete this study and to pay for its corporate office needs through the issuance of shares in the public and private markets and through the continued exercise or its existing options and share purchase warrants.
About Copper Fox
Copper Fox is a Canadian-based mining company listed on the TSX-Venture (CUU). The Company has concentrated its project activities exclusively to the Schaft Creek mineral property, one of the largest undeveloped copper, gold, molybdenum and silver deposits in Canada. Schaft Creek comprises 20,932 hectares situated in northwest British Columbia, Canada at 57° 21' N latitude and 130° 59' W longitude on the eastern slopes of the coastal mountain ranges. Fortunately, the location is situated between the highway and the glaciers in the area, and also benefits from a significantly lower average precipitation of rain and snowfall compared to the Pacific (west) side of these same ranges.
The preliminary mining plan is designed to extract the core 713.3 million tonnes of a Measured and Indicated, 43-101 compliant, mineral resource grading 0.304% copper, 0.218 g/t gold, 1.77 g/t silver, and 0.020% molybdenum, for a copper equivalent based on Case 2 metal pricing of 0.663% and a waste to ore ratio of 1.66 over 31 years, within the current NI 43-101 Mineral Resource of 1.4 billion tonnes, using a 0.20% CuEq cut off. Copper Fox holds the property pursuant to an option agreement with Teck Cominco Limited and may acquire up to a 93.4% direct and indirect interest in the property. Copper Fox has delivered notice to Teck Cominco that it has surpassed the $15,000,000 threshold of qualifying expenditures and has earned a direct 70% interest in Schaft Creek. Title to the property is in good standing before the BC Government until 2018.
For additional information contact:
Investor inquiries: Jason Shepherd, Phoenix Communications Group Tel: 1-866-913-1910
E-mail: investor@copperfoxmetals.com
On behalf of the Board of Directors
Guillermo Salazar S, President and CEO
The TSX Venture Exchange has not reviewed the contents of this news release and accepts no responsibility for the adequacy or the accuracy thereof.
Cautionary Note Regarding Forward-Looking Information
This news release includes "forward-looking information" within the meaning of the Canadian securities laws. All statements, other than statements of historical fact, included herein and including, without limitation; anticipated dates for receipt, commencement or completion of permits, approvals, construction, production and other milestones; anticipated results of drilling programs, scoping, prefeasibility and feasibility studies and other analyses; anticipated availability and terms of future financings; estimated timing and amounts of future expenditures; Copper Fox's future production, operating and capital costs; operating or financial performance; geological interpretations and potential mineral recovery processes, are forward-looking statements. Information concerning mineral reserve and resource estimates also may be deemed to be forward-looking information in that it reflects a prediction of the mineralization that would be encountered if a mineral deposit were developed and mined. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies. For any forward looking information given, management has assumed that the geological, metallurgical, engineering, financial and economic advice it has received is reliable, and is based upon practices and methodologies which are consistent with industry standards. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Important factors that could cause actual results to differ materially from Copper Fox's expectations include: fluctuations in copper and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for co-operation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; and other risks and uncertainties disclosed in Copper Fox's continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. The forward-looking information in this news release is based on Copper Fox's current expectations and Copper Fox assumes no obligations to update such information to reflect later events or developments, except as required by law.